Hong Kong's air services negotiators have offered Taiwan a major concession in an effort to kick-start stalled talks on a new arrangement governing commercial air services between the two sides.
A senior government source said Hong Kong informed the Taiwanese Government late last week that it was backing off its earlier stance that it would agree only to negotiate with Taiwan's airlines on a new pact.
This was in stark contrast to Taipei's insistence that since Taiwan-Hong Kong air services constituted cross-strait relations, negotiations on their side would be handled directly by government bodies or government-authorised private agencies such as the Straits Exchange Foundation.
Hong Kong has now indicated it would agree to revert to past practice in negotiating the new arrangement with the Taipei Aviation Association (TAA), an industry coalition that includes Taiwan's major carriers.
It is believed Beijing is behind Hong Kong's change of stance, which is part of increased wooing of Taiwan by the central Government, including last week's relaxation of a mainland travel ban on members of the ruling Democratic Progressive Party.
The TAA was the body with which Cathay Pacific Airways negotiated its last agreement concerning Taiwan traffic rights in 1996. Macau also negotiated its pact with the association in 2000.